Realtors – Don't let the home inspection "KILL" the deal

Realtors – Don't let the home inspection "KILL" the deal

Glenn Thorne - Guardian Inspections

Realtors often complain to me about inspectors who kill the deal.  On the one hand they always say that they don’t want their clients to buy a home and face unknown problems but they usually have a story or two about an sale that went awry after the inspection.  In some cases they feel the inspector should have handled the inspection or reported things differently.  Stories about poor communications, overzealous reporting, fear mongering to get more business, etc. are amongst their complaints.  In a future post I will discuss some of the steps professional inspectors take to better perform their inspections but in this post I primarily want to provide some tips for realtors so they may be better equipped to have a successful home inspection experience that supports rather than hinders the sale.

Recommend inspectors that adhere to reputable standards

·         Familiarize yourself with popular inspection standards
·         Pay attention to what inspections include and do NOT include

There are many different standards for home inspectors.  ASHI, CAHPI and others.  Many of them share common themes and specifications. Most home inspection standards are geared towards the systems of the home, they are not maintenance lists. You should familiarize yourself with the standards and be prepared to question the inspector as to why he is falling short of or exceeding them.  Consider asbestos.  Most inspection standards do not include looking for or identifying asbestos.  Asbestos identification and implications fall outside of the generalist training of most home inspectors thus it is often outside of the scope of the inspection.  Some other topics that are often left out or given short shrift in various inspection standards are smoke detectors, outbuildings, asbestos, insects and more.  By familiarizing yourself with the standards, you will better understand the work that the inspector will be undertaking on behalf of your client.

Pay attention to the inspectors communication skills

·         Accompany the inspector and the client on the inspection
·         Look for a verbal report onsite that is designed to place findings in context
·         Check that the report clearly identifies each problem, notes the implications and makes a recommendation (do nothing, monitor, further investigate, affect repair)

The purchase of a new home is very emotional for most buyers.  The last thing anyone needs is to have a scary inspection report arrive unexpectedly late at night in the buyers email.  Inspection findings that could have been placed in context during the inspection now take on a life of their own as the buyer attempts to reconcile them without help.  It is always best that the inspector take some time at the end of the inspection to review the primary findings with the client.  This allows for questions and answers and the opportunity to be clear as to the real ramifications of the findings.

It is very important that the inspector not make a judgement about the value of the home or give the home a pass or fail.  The inspector should not be privy to the purchase price for the home and therefore cannot and should not make any value judgements.

Watch out for guesswork

·         Recommend inspectors who report factually and do not make guesses

 Professional home inspectors never guess.  When a water stain is found in a ceiling, it can be classed as active or as evidence of past water penetration.  Unless the inspector can positively identify the source it is important that he not take stabs in the dark as to the cause of any problem. Not only can it be upsetting to the buyer and the realtor, it can also lead to liability for the inspector.  Nevertheless, some inspectors will not admit that they do not have x-ray vision and will have an answer for everything.  Your clients deserve better.

 

Have the seller pre-inspect the house

·         Look for inspection red flags and have them remediated before the inspection

 This is not the same as a pre-inspection by a home inspector, though that is a good idea.  Simply put, it’s a thorough walk through by the seller before the inspection.  Look for the red flags that can torpedo the sale but are easily eliminated.  Examples include missing electrical face plates, exposed wiring, missing insulation, old water stains where the problem has been repaired, missing leaders, old fuses left around, loose toilets, leaky plumbing, damaged shingles, etc.  These are low hanging fruit, easily fixed now, before they can show up in a home inspection report.

Choose an inspector who is responsible to the home

·         Recommend thoroughly trained inspectors
·         Review the report with/for your clients

 We often ask this question of Realtors - Who do you think the inspector is responsible to?  Most answer that the inspector is responsible to the buyer who is paying the bill.  In fact, the inspector is responsible to the home.  It is correct that the inspection report is the property of the client, but the inspector must be responsible to the profession and that means reporting on the home as it presents itself and adhering to the standards of the profession. It is important the inspector not be influenced by any party and that includes realtors, buyers looking to get money off the sale or back out of the deal, sellers who want some things overlooked, etc.  If you can recommend those inspectors who you know are true to the home, then you can be assured that everyones interests are protected.

Understand what an inspection is – and isn’t, and prepare your client accordingly

·         Insure the home is prepared for the inspection
·         Inform the buyer/seller ss to what the inspection really is

 Always inform the seller that access to the home and its systems is very important during the inspection.  Here are a few things to keep in mind:

1. Ensure the attic and crawl space can be easily accessed
2. Allow unrestrained or unannounced pets during the inspection
3. The inspector will not move furniture or use significant tools to access things.  Have the home cleared and readily accessible
4. Do not expect the inspector to go into unsafe areas or take your word without checking himself – he will not.

Inform yourself and your clients exactly what to expect from the inspection:

A home inspector should be professionally trained in defect recognition and reporting by a reputable training organization.  While many inspectors have construction and trades backgrounds, it is unlikely that you will find one what is expert level in all of the different trades involved in home construction. And even if you did, construction requires a different set of skills than defect recognition in homes that are 5, 10, 50 years and older homes.

Look for an inspector that has been professionally trained in defect recognition and reporting.  Also realize that home inspections are visual and non-invasive.  If you read (highly recommended) the home

inspection standards, you will see that inspectors will generally not move furniture, enter unsafe areas, remove panels that require specialized tools, open or close valves, or do anything that could potentially damage the home.  After all, the house still belongs to the seller at this point.  Inform your clients of this and advise them clearly as to the true nature of a home inspection.

Coming soon - A better inspection experience

If I can be of service to your or your clients, please feel free to contact me. inspector@guardianhomeinspections.ca
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